Transitioning from Aggressive Acquirer to Efficient Operator

Abstract

While much has been written about maximizing shareholder value through the acquisition process, relatively little has been written about quickly transitioning a company from an aggressive acquirer to an efficient operator of assets it's already acquired. This article describes certain triggering events that make such a transition necessary and illustrates that the transition can be effective when acquirers-turned-operators 1) analyze fast and proceed quickly, 2) establish efficient infrastructure, and 3) cultivate the right team to initiate cultural change. It also portrays the promise of renewed growth strategies, but in the future based on efficient operating models. These concepts are illustrated through the case example of InterDent, in 2002 the nation's largest dental practice management company, and at the time in the midst of such a transition.